Compute implied annualized rate of return

Assignment Help Business Management
Reference no: EM133058006

On January 1st, the One Star Capital pension fund bought 1,000 US T-Bills that each had a $1,000 par value. One Star held them for exactly 90 days until they matured. If they paid $995.40 for each T-Bill, what was the implied annualized % rate of return for this investment? (assume a 360-day year)

To finance the purchase of the T-Bills, One Star borrows $1,000,000 each day on the "Repo" market, placing the T-Bills as collateral. Assuming a constant 0.80% annualized rate for the one-day "repo" rate, how much interest (in dollars and cents) does One Star have to pay each day to its counterparty? (assume a 360-day year)

Reference no: EM133058006

Questions Cloud

What is Cash Flow from Operating Activities : Querrey, Corp reported the following: Net, Deferred Tax Liabilities $10,000 increase. What is Cash Flow from Operating Activities
Concept of risk and insurance : Concisely and precisely explain the meaning and the implications of "risk reduction by pooling of losses". What are the key underlying assumptions?
General industries expected current share price : XYZ Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 1% per
What is diluted earnings per share : Shares outstanding for the entire year was 250,000. If Net Income for Pegula, Inc. was $75,000 what is diluted earnings per share
Compute implied annualized rate of return : On January 1st, the One Star Capital pension fund bought 1,000 US T-Bills that each had a $1,000 par value. One Star held them for exactly 90 days until they ma
Considering development opportunities : Why is important to consider the option value when considering development opportunities?
Require large volumes of past transactions : The comparable sales method to valuation is preferred over hedonic pricing, as it does not require large volumes of past transactions. Comment.
Why do private equity investors invest in distressed debt : Why do private equity investors invest in distressed debt? How does this differ from Hedge Fund activity in distressed debt?
Sustained growth and strong financial performance : Kevin Johnson, Starbucks' CEO, has hired you as a consultant and asked you to do three things: (1) critique the company's present strategy; (2) identify the str

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd